oboloo Glossary

Materials Resource Planning

oboloo Glossary

Materials Resource Planning

Materials Resource Planning, or MRP for short, is a business strategy that helps manufacturers forecast their materials needs and plan for their production cycles in advance. MRP looks at inventory levels, customer demand, production times, and lead times to create a comprehensive view of your supply chain–from raw material acquisition to finished product delivery. By using MRP, businesses can plan ahead, accurately estimate costs, and make sure they’re always on top of their inventory. Put simply, it’s an efficient way to manage the amount of materials you need and when.